Cryptocurrency adoption continues gaining momentum in Switzerland as local financial government grant more regulatory approvals for crypto investment instruments.

The Swiss Financial Market Supervisory Authority (FINMA) has approved the Crypto Marketplace Index Fund as the "starting time crypto fund co-ordinate to Swiss law," the authority officially announced on Wednesday.

The fund is launched by Swiss asset director Crypto Finance and is administered by investment management house PvB Pernet von Ballmoos AG with custody by regulated custodian SEBA Banking company AG.

FINMA noted that the newly approved fund is restricted to qualified investors, investing primarily in cryptocurrencies or digital avails "based on the blockchain or distributed ledger technology."

The regulator said that the Crypto Market Alphabetize Fund may only invest in leading cryptocurrencies with a "sufficiently big trading book." According to Crypto Finance, the fund will track the performance of the Crypto Market Index ten, a product administered by the Half dozen Swiss Substitution.

"The objective of the Crypto Market place Alphabetize ten is to reliably measure the performance of the largest, liquid crypto assets and tokens and to provide an investable criterion for this nugget class," Crypto Finance noted.

Related: SEBA Bank granted the offset Swiss digital asset custody license

FINMA added that it would require investors to invest simply through established counterparties that are based in a member state of the Financial Action Chore Force and are subject to corresponding Anti-Money Laundering regulations.

In conjunction with the fund approval, FINMA has besides approved SEBA Bank AG as an institutional-grade custodian service by granting the firm a CISA license. Previously, the authority officially allowed SIX Swiss Exchange to launch a digital marketplace and fundamental securities depository built on distributed ledger technology in early September.